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Best way to make money off £5000-£6000

RyanLl
Posts: 7 Forumite
I have just had my 18th birthday and my old post office savings account can now be withdrawn. With that and the birthday money, I have around £5000-£6000 to put into an ISA or invest..
I know its not a huge amount of money so I'm not expecting a large markup, what would you suggest me do with the specified amount of money that I have?
Any details that you may need to know about me please say,
Cheers! :beer:
I know its not a huge amount of money so I'm not expecting a large markup, what would you suggest me do with the specified amount of money that I have?
Any details that you may need to know about me please say,
Cheers! :beer:
0
Comments
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You could open a stocks and shares ISA with an online broker (I use Interactive Investor). Start a portfolio with a few shares. If you use their 'portfolio builder' option, you can buy each share for only £1.50 so it is economical to buy in smaller lots of say £500 per share. You could therefore buy 10 different shares with £5K.
Personally, I would recommend higher yield blue chips from the FTSE 100 e.g Vodafone, Tesco, M & S, AstraZeneca etc. This is the best way to make money on the stockmarket over the long term but it depends what your objectives are. You might like more risk with small cap miners or oil drillers etc.
Alternatively, look at investment trusts (research on Trustnet).
Good luck!
BLB0 -
At least half in a Cash ISA as you don't want to put all your savings at risk while you 'learn'.0
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At least half in a Cash ISA as you don't want to put all your savings at risk while you 'learn'.
If OP is interested in dabbling in shares, better to have a go with a virtual portfolio before jumping in at the deep end.0 -
Indeed, if it was my entire savings I would put it all in a cash ISA.
Only problem is, inflation at 5% is eroding the value of the cash ISA every year. With dividend shares, you will get a real return above inflation over the longer period and the possibility of a capital gain as well.0 -
Inflation is a small risk as compared to someone who invested it all a mere 10 days ago or even worse, 3 months ago.
If it is all your money and you are a novice, you are best not advised to trade in individual shares, and best advised to not invest all your money. Funds, after a cash buffer can be much safer.
And any cash saved could easily be invested in the next series of inflation linked bonds by NSI when theya re released.0 -
Only problem is, inflation at 5% is eroding the value of the cash ISA every year. With dividend shares, you will get a real return above inflation over the longer period and the possibility of a capital gain as well.0
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5 or 6000 scratch cards0
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A cash ISA at 18, are you kidding? £6000 losing 1% a year to inflation for 50 years would be worth what, 4k(?) in retirement.
Do you live at home?
How much more can you put in each year?
Do you have any vague plans for the money IE house deposit.
Those are the questions everyone should be asking you.
If it was a relative of mine, at 18, carefree and willing to risk the whole sum I'd tell them to put it in a stocks and shares ISA and buy CAD (Cadogan petroleum). (of which I am a holder myself).
At 18 with a pregnant girlfriend, an expensive flat to pay for and a duff job its a different story. Thats where the cash ISA option comes in.
Decide where you are between those extremes before you make any decisions.
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
Save it into a cash ISA and use it towards the deposit on your first property.
Consider a longer term fix rate to obtain a decent return.0
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